Oil price woes hit ratings

It’s not just energy producers such as Origin, Santos and Woodside being on wrong end of credit downgrades from ratings agencies as oil prices have fallen back to 2004 levels. Countries, or “sovereigns” as they are known in financial markets, are experiencing it as well. Standard & Poor’s announced a two-notch downgrade to Saudi Arabia’s credit rating, from A+ to A-. Neighbouring oil and gas producers Oman and Bahrain also received downgrades. Oman now has a BBB- credit rating, which is still investment grade but only one notch above “junk” status while Bahrain’s credit rating is B, which is well into sub-investment grade territory.